The drone deal found a mention in India PM Narendra Modi and US President Joe Biden's joint statement
India is reportedly set to send the letter of request (LoR) to US government for procurement of 31 MQ-9B remotely piloted aircraft systems (RPAS) from General Atomics. According to a Hindustan Times (HT) report, the deal will be executed under the foreign military sales (FMS) programme of the American government.
The first step towards the deal was taken last month when the defence acquisition council (DAC) issued acceptance of necessity (AoN) for the drones. The deal also found a mention in the joint statement of US President Joe Biden and Indian Prime Minister Narendra Modi during latter's US state visit.
“The MQ-9Bs, which will be assembled in India, will enhance the intelligence, surveillance, and reconnaissance (ISR) capabilities of India’s armed forces across domains,” the joint statement said. It added that General Atomics will also establish a maintenance, repair and overhaul facility in India to boost country’s indigenous defence capabilities.
According to the available details of the deal, the initial estimated cost was $3.07 billion (around Rs 25,000 crore). However, reports have indicated that the negotiations over pricing are still due and the final price could be different from the estimated cost.
Hindustan Times reported citing sources that out of the total 31 drones, Indian Navy will get 15 while Indian Army and Air Force will get eight each. The report added that 10 ready-made drones will be bought while the other 21 will be assembled in India. India is also looking to increase technology transfer under the deal from 8-9 per cent to 15-20 per cent, HT report said.
US is now expected to issue a letter of acceptance (LoA) following which the formal negotiations will begin. After India’s contract negotiation committee approves the deal, it will be put before PM Modi-led cabinet committee on security (CCS) for final approval.